Monday, October 3, 2011

Austerity Doesn't Work, But That's The Point

To the surprise of no one with the slightest clue about economics, the austerity measures put into place by governments around the world are making their economies worse. Dean Baker:
"The government has raised taxes and cut services and is announcing tougher steps every other week. So far it has been to no avail; the economic outlook keeps getting worse, not better."

When the government pulls money out of the economy by laying off workers, cutting government workers' pay, and raising taxes, the expected result is a weakened economy. This is exactly what has happened in Greece. It is difficult to understand what the Post meant in saying "to no avail."
It's incredible that this needs to be pointed out, but austerity was never designed to work. It's a new word for decades old policies designed to destroy government, screw the poor, and enrich the wealthy.

When people are losing their and having their pay cut, they spend less of it, and the economy sucks.

There is no cutting to grow.

It doesn't work.

It never has.


In human history.

This is not rocket science.


  1. But you just pointed out how austerity does work if the aims are what you listed out: keep the poor poor, keep the rich rich. Austerity measures are enacted to benefit specific people by their political "friends." By using that lens austerity is effective.

    And now I'm sad.

  2. Good point. It's working for some people, just not us.